EXPLORE YOUR U. S. CONSTITUTION

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The founding document as written, a plain overview of the seven Articles, and a glossary of archaic and legal terms.

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Economic & Financial Regulation

Interstate Commerce Act

Enacted: 1887

Signed into law by

Grover Cleveland

In brief

Created the Interstate Commerce Commission — the first modern federal regulatory agency — to police railroad rates and practices.

The Act in depth

Signed by Grover Cleveland on February 4, 1887, the Interstate Commerce Act required railroad rates to be 'reasonable and just,' prohibited discriminatory pricing, and created the Interstate Commerce Commission to investigate and enforce compliance. It was Congress's response to farmers' and merchants' complaints of rate-gouging and to the Supreme Court's decision in Wabash v. Illinois (1886) that only Congress — not the states — could regulate interstate railroad rates. The Act inaugurated the modern administrative state and the model of the independent regulatory commission later copied by the FTC, FCC, SEC, and NLRB.

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